“As we had said in our last earnings call, we have taken a number of steps to improve the customer experience on our site, including the removal of ads from our home page, reduction of intrusive and non-contextual ads on other pages, as a result of which we expected a reduction in our revenue in the upcoming quarters. Accordingly, we saw a decline in revenues for the quarter ended September 30, 2009 by 16% over the previous quarter and by 43% over the corresponding quarter in the previous year in US Dollar terms. However, we believe that these user–experience-improvement initiatives have started to show results and have helped us restore the growth in our user base, as measured by ComScore (NSDQ: SCOR) Media Metrix,” Rediff chairman and CEO Ajit Balakrishnan said in a statement.

Balakrishnan said the company will continue this strategy and invest in product development and brand building at the rate of $1-1.5 million in the next few quarters.